Service tax and sale tax both are included in one invoice

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NITISH (Querist)
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01 February 2012 Hello,

I have a query regarding service tax.
our company is a software reseller and we are billing like as "amount" + 'service tax'= "sum of amount" + 'vat/ cst'= "T. Amount". I want to know that is it a right way of billing or not.

ex- 100+10.3%= 110.3+5%= "115.81"

if we received 50/- an advance payment against above amount(115.81), how we calculate the service tax for deposit ???????

please give a suggestion regarding this problem.

Thanks
Nitish

CA SUMiT PATWARi

CA SUMiT PATWARi (Expert)
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01 February 2012 Hi nitish,

Going by simple mathematics.

Your Rs 50(115.81%) = basic(100%) + service tax(10.3%) + vat(5.81%)

Then service tax component received in Rs 50 = 50 * (10.3 / 115.81)